Calgary Real Estate predictions?

[habernac]

Originally Posted by Calgary14

I'd love to bike to work but live too far away. I've driven occasionally and it's a bad experience on the best of days so I settle for calgary transit

how far is too far? You'd be surprised what you can get used to.

Originally Posted by V

When I bike to work it takes me 13 minutes, but then another 15 minutes before I'm showered and at my desk. I wouldn't enjoy spending the day in my sweaty clothes, so I wouldn't bike if I couldn't shower.

We don't have a shower at my current location, but luckily for me, I don't have much hair left. I shower quickly before I go, then wipe up in the washroom when I get to work.

[Oil Stain]

If you started with CMHC insurance and now have more then 20% of your home in equity does the insurance drop off when you renew your mortgage?

If not, can you chose to have it removed?

[ranchlandsselling]

Originally Posted by Oil Stain

If you started with CMHC insurance and now have more then 20% of your home in equity does the insurance drop off when you renew your mortgage?

If not, can you chose to have it removed?

You buy insurance for the amortization of the mortgage.

If you want to not have a CMHC insured mortgage the bank would have to agree to remove CMHC from the mortgage. No bank is going to do that. Why would they give up the best guarantee they're going to get. They would let you apply for a new mortgage at the end of whatever term you're on or even earlier if you wanted to pay the penalty. But you'd incur legal costs and an appraisal. Or you go to a new bank, apply for a new mortgage with more than 20% equity and leave your current lender paying out the current mortgage (penalty) or doing at the end of the term.

[Calgary14]

Originally Posted by habernac

how far is too far? You'd be surprised what you can get used to.



We don't have a shower at my current location, but luckily for me, I don't have much hair left. I shower quickly before I go, then wipe up in the washroom when I get to work.

It's about 12 km

[Slava]

Originally Posted by Calgary14

It's about 12 km

That's about 1/2 an hour? I kind of think that is about the perfect time and distance to bike to work! I've biked to my office and while I wouldn't do it every day, it's about 30km each way. It's a bit much for a daily commute for me, but 12km is totally manageable I would think.

[Calgary14]

Originally Posted by Slava

That's about 1/2 an hour? I kind of think that is about the perfect time and distance to bike to work! I've biked to my office and while I wouldn't do it every day, it's about 30km each way. It's a bit much for a daily commute for me, but 12km is totally manageable I would think.

Well to be honest 12km is a guesstimate at best. Live near Chaparral, work downtown. Not sure if there is a decent bike route I could take from 22X to downtown. I'd prefer to be away from major roads (ie Macleod). I'd think the distance wouldn't be an issue, I'm just not sure what route to take. Fish creek park has great trails but obviously doesn't go north-south

[Jedi Ninja]

^More like 20K+. Lake Bonavista is about 14K.

[Slava]

Originally Posted by Calgary14

Well to be honest 12km is a guesstimate at best. Live near Chaparral, work downtown. Not sure if there is a decent bike route I could take from 22X to downtown. I'd prefer to be away from major roads (ie Macleod). I'd think the distance wouldn't be an issue, I'm just not sure what route to take. Fish creek park has great trails but obviously doesn't go north-south

I live in Somerset and work in Bridgeland. Its not 30km by car, but on all bike paths it is roughly that amount. If you were to take the bike routes (which run along side streets parallel to MacLeod for example) the distance is much less. I haven't biked yet this year, but that's what I will do next time and I figure it will take me about 45-1hr each way at that point.

The other alternative is to drive partway and then take your bike from say 1\2 way. The city has a couple lots for this including Maxbell Arena where you still get the bike in, but its a little less daunting.

[Calgary14]

Originally Posted by Slava

I live in Somerset and work in Bridgeland. Its not 30km by car, but on all bike paths it is roughly that amount. If you were to take the bike routes (which run along side streets parallel to MacLeod for example) the distance is much less. I haven't biked yet this year, but that's what I will do next time and I figure it will take me about 45-1hr each way at that point.

The other alternative is to drive partway and then take your bike from say 1\2 way. The city has a couple lots for this including Maxbell Arena where you still get the bike in, but its a little less daunting.

I could handle 45 min. And it would be a nice break from public transit. The half drive/half bike idea is a good option as well

[lorenavedon]

Originally Posted by ranchlandsselling

Bye Bye CMHC second home program!
http://www.theglobeandmail.com/repor...board/follows/

will impact Calgary more than others because in Calgary the only people working on staff are government workers and about 5 other random people. Everyone is on contract and pay themselves in the lowest tax bracket or just dividends. This will impact contractors that need a legit salary to put a down payment. Also every second person in this city is horny for real-estate (investment properties) so they leverage properties against eachother with the lowest downpayment they can get. Very rarely do these people put down %20. This city is filled with "real-estate moguls" making $60k to $80k/year and leveraged to the hilt. We'll see where that lands.

[I-Hate-Hulse]

Originally Posted by lorenavedon

will impact Calgary more than others because in Calgary the only people working on staff are government workers and about 5 other random people. Everyone is on contract and pay themselves in the lowest tax bracket or just dividends. This will impact contractors that need a legit salary to put a down payment.

How completely wrong is this statement? Depends on the company and business but 80-90% of employees in an E&P are staff, not contractor. Engineering and geology, and sometimes IT where you've got project work where you like to dump staff when activity falls can be higher, but most people are staff, not contractor.

Though I'm with you when you say there are too many people leveraged to the hilt thinking income properties are the best thing ever... and I say this as a landlord.

[Clarkey]

Originally Posted by hulkrogan

I clocked my bike to work one day in the summer because I'd always told people when they asked that it was 10 minutes, but I was pulling that out of my butt. I was wondering if I was a cronic underestimator like all.

It was 6 minutes.

By 'clocked' do you mean you looked at your watch when you left and looked at it again when you arrived?

[Winsor_Pilates]

Originally Posted by lorenavedon

Also every second person in this city is horny for real-estate (investment properties) so they leverage properties against eachother with the lowest downpayment they can get. Very rarely do these people put down %20. This city is filled with "real-estate moguls" making $60k to $80k/year and leveraged to the hilt. We'll see where that lands.

Investment properties already require 20% down, and have since 2010.
By "very rarely", did you mean "almost always"?

[The Yen Man]

Originally Posted by lorenavedon

will impact Calgary more than others because in Calgary the only people working on staff are government workers and about 5 other random people. Everyone is on contract and pay themselves in the lowest tax bracket or just dividends. This will impact contractors that need a legit salary to put a down payment. Also every second person in this city is horny for real-estate (investment properties) so they leverage properties against eachother with the lowest downpayment they can get. Very rarely do these people put down %20. This city is filled with "real-estate moguls" making $60k to $80k/year and leveraged to the hilt. We'll see where that lands.

Wow, so much wrong in this statement. I'm guessing all your knowledge on investing in rental properties is "so and so said so" and not based on any actual first hand knowledge. As mentioned by WP, you can't put less than 20% down for an investment property.

[mustache ride]

Originally Posted by The Yen Man

Wow, so much wrong in this statement. I'm guessing all your knowledge on investing in rental properties is "so and so said so" and not based on any actual first hand knowledge. As mentioned by WP, you can't put less than 20% down for an investment property.

That's not quite true if you do it the other way. I put down 5 percent for both my houses but i used the first one as the " investment property" and moved into the second one. I bought both within a year and i don't think the market value equity i had was even 10 percent.

[lorenavedon]

Originally Posted by The Yen Man

Wow, so much wrong in this statement. I'm guessing all your knowledge on investing in rental properties is "so and so said so" and not based on any actual first hand knowledge. As mentioned by WP, you can't put less than 20% down for an investment property.

yes you can. And guess what. You can still buy a home with %0 down as well. You're the one that doesn't know what they're talking about.

[ranchlandsselling]

Originally Posted by Winsor_Pilates

Investment properties already require 20% down, and have since 2010.
By "very rarely", did you mean "almost always"?

Originally Posted by The Yen Man

Wow, so much wrong in this statement. I'm guessing all your knowledge on investing in rental properties is "so and so said so" and not based on any actual first hand knowledge. As mentioned by WP, you can't put less than 20% down for an investment property.

While worded quite poorly and using a bit of a blanket statement, the poster you replied to is not totally out to lunch.

I've even seen Realtor1 suggest buying an investment property with 5% down in another thread. You just call it a second home. I know at least 6 people who have bought additional homes this way. My wife bought her first place, I bought my first place, we bought a new place and rented our other two places out. They've since been sold, but we wouldn't have been able to buy another place had this new rule been in place. I had looked at buying a rental in a BC town this same way. I know plenty of other people who have done this - and having been on the broker side working with realtors I've seen plenty of "second homes" that are used as rentals.

I'm not certain it'll have a substantial impact on the market, but I'm wondering . . .
Enough with the bike commute talk, probably belongs in the cycling thread

[Winsor_Pilates]

Originally Posted by ranchlandsselling

While worded quite poorly and using a bit of a blanket statement, the poster you replied to is not totally out to lunch.

I've even seen Realtor1 suggest buying an investment property with 5% down in another thread. You just call it a second home. I know at least 6 people who have bought additional homes this way. My wife bought her first place, I bought my first place, we bought a new place and rented our other two places out. They've since been sold, but we wouldn't have been able to buy another place had this new rule been in place. I had looked at buying a rental in a BC town this same way. I know plenty of other people who have done this - and having been on the broker side working with realtors I've seen plenty of "second homes" that are used as rentals.

I'm not certain it'll have a substantial impact on the market, but I'm wondering . . .
Enough with the bike commute talk, probably belongs in the cycling thread

You're right. There's definitely work around ways to buy an investment property without 20% down, I'm certainly aware of that.

But it's hardly something that most investors do, which is what I was responding to with that other poster's exaggerated blanket statement.

[Bill Bumface]

Originally Posted by Clarkey

By 'clocked' do you mean you looked at your watch when you left and looked at it again when you arrived?

I made use of the start and stop button on the chronometer.

[Flamenspiel]

Not sure but i think the ability to bye second homes at less then 20% is there, its just that CMHC will not insure it. To me thats a good thing, the investor should hold the risk, not CMHC and the taxpayer.

That aside, my understanding is that if you have enough equity, you can still obtain a an LOC to purchase the investment property with no down payment, as long as the bank gives you the money. Of course they then have a lean on your property and can foreclose if you cannot make the payments.

Not sure about the "second home", i am pretty sure that Revenue Canada does not recognize that.